All I want to do is pay these credit card off, but the intrest rates are killing me.
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Tue, Mar 10, 2009
Credit Card Debts
Tags: Credit Card Debt, Credit Debt, Intrest Rates
I would start by rolling over your accounts to new credit cards that give you 1yr at 0%. This will greatly reduce your credit balance from going up exponentially. In that time you stop using your credit and start paying it down. It will take a while so at the end you should repeat the process and rollover your balance to another credit card.
I know individuals that have been rolling over $50,000 in this manner for over 5yrs. Borrowing money for free. Wow it is possible.
sale everything you got
Cut up all your cards. Pay more than the min. when one card is payed off roll that payment onto the next card untill it is payed off. then continue to roll all payments to the next card, and so on and so on. This is the quick way out of debt
Well, cut your other expenses first of all. You dont have any expendable income, all your money should pay your utilities, car payment, insurances, phone, food, gas, and the rest of your cash should go towards paying back your debt. Pay more than the minimum per month on the credit card also, make a goal of paying at least 300 a month, if you cant do that, make the goal 200 a month. And stop using your credit card. So if you just take the principal that you owe of the 16000 and not counting interest it would still take 80 months to pay which is roughly 6 and a half years. If you paid 300 a month it would take 4 and a half years. My brother in law has 30,000 in debt but he has gotten it down to 10,000 in the past 6 years because he stopped using his card and only bought things he needed. But I'm guessing your interest rate is like 19% so that will add a few thousand dollars. Make as high of payment as you can possibly do because this is absolutely killing your credit rating.
First, if any of your accounts are delinquent, call the companies and ask for repayment programs. Make sure they are programs that report the account as closed by consumer on your credit report, so that the programs don't hurt your credit. Second, on your accounts in good standing that are open, call customer service and tell them you want to close the account because of the high interest rate. If your account is in good standing, many major credit cards will offer to lower your interest rate to keep the card open. (If you keep some open don't use them!) Further more, be wary of credit consuling serives. I work for a credit card company in the collections department and every day I talk to people who have trouble with CCCS. Some of the companies will allow your accounts to fall into higher delq so that card companies offer better programs. Some credit counsulers will keep your first payment as a fee. Some are decent though.
I paid off (alot) of debt with the Dave Ramsey Plan.
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